SALEM — State lawmakers have begun to examine possible tax increases to help offset the coming budget period’s $3 billion shortfall.

The House Revenue Committee held a hearing Friday on a series of income tax proposals, most of which target Oregon’s highest wage earners.

Among the possible additions are increased tax brackets for those making $125,000 or $150,000, a minimum tax for those make more than $125,000 a year and a decrease in the amount of federal taxes that can be deducted from state taxes.

With billions of dollars in lost revenues, legislators have said they’ll have to match painful program cuts with new ways to raise money.

Committee members continued to remind each other just how dire the situation was. Though the state economist has predicted a $3 billion shortfall, Rep. Cliff Bentz, R-Ontario, and co-chair Phil Barnhart, D-Eugene, both said it was more likely to approach $4 billion.

“That is a very scary number in terms of reductions to the sorts of services Oregonians need,” Barnhart said.

Jim Welsh, a lobbyist for the Taxpayers Association of Oregon, said he thinks it’s unlikely the Legislature will adjourn without some substantial tax increases, however hard he and others may fight them.

“We knew that they would probably be headed this direction, and it’s just ludicrous at this point in time to even be thinking about it,” Welsh said. “This will just, like a big old economic vice, it will start shutting even more things down.”